Harrison Corporation Sells a Building for $330,000 in the Current

question 87

Multiple Choice

Harrison Corporation sells a building for $330,000 in the current year. Harrison purchased the building in 2008 for $250,000 and had taken $20,000 in depreciation on the building up to the date of its sale. How should Harrison report the gain on the sale of the building?

• A)Section 1231 gain of $100,000.
• B)Ordinary income of $100,000.
• C)Section 1231 gain of $80,000 and ordinary income of $20,000.
• D)Section 1231 gain of $96,000 and ordinary income of $4,000.
• E)Ordinary income of $96,000 and Section 1231 gain of $4,000.

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Definitions:

Alcohol Use

The consumption of beverages containing ethanol, varying from occasional drinking to chronic abuse, with potential impact on health and behavior.

Tolerance

The capacity to endure continued exposure to a substance (like a drug) without adverse reactions, or a broader acceptance and openness towards the practices and views of others without sharing them.

Selectively Bred

A process by which humans deliberately choose the breeding partners for a species based on desired traits, leading to genetic modifications over generations.

Behavior Genetics

The study of the role genetic factors play in shaping behaviors, personality, and psychological traits.